Could it be the start of a new wave of dealer consolidation? This week, we report on a deal which will see a dealer add Yale to its Hyster line-up. Both Yale and Hyster fall under the Nacco Materials Handling Group which is adamant that it will not combine the brands. But some analysts see the Arnold Machinery Co as the thin edge of the wedge. There’s no doubt that manufacturers need to realise some benefits of scale and surely consolidating some of the systems and processes around multiple brands must be on the cards. So, as we often say around here, watch this space…

While nothing is final yet, Arnold Machinery Co may add Yale product at its Hyster dealerships in five states, linking Nacco Materials Handling Group (NMHG) brands.

“We will sell both (Hyster and Yale) brands in our Rocky Mountain territory,” says Rex Mecham, president of the materials handling division of Salt Lake City-based Arnold Machinery. “What we announced was based on a change in NMHG policy now allowing single owners of a brand” to acquire and market NMHG’s other brand in North America.

Arnold has agreed in principle to purchase the Yale business in Nevada, Arizona, Colorado, Utah and Idaho from H&E Equipment Services Inc of Baton Rouge, Louisiana and may complete the transaction by 31 July.

If concluded, the Arnold-H&E transfer might become the first of several geographic NMHG dealership consolidations.

Senior executives of NMHG and parent company Nacco Industries Inc met in June in Chicago to discuss possible distribution-consolidation avenues with certain Yale and Hyster dealers. Each attendee was required to sign a non-disclosure form.

“We have been looking at improved organisation designs for some time as a growth strategy and to better support our dealers and customers, and our ultimate goal is strong Hyster and Yale representation in every market,” says Colin Wilson, vice president and chief operating officer for NMHG in Greenville, North Carolina. “NMHG has not changed its view with regard to consolidation of brands. There is a Yale brand, and there is a Hyster brand. The two brands will not be combined.”

NMHG managers and dealers are aware of an effort at joint venture Mitsubishi Caterpillar Forklift America Inc (MCFA) of Houston, Texas. Beginning in 2006, MCFA established a two-brand, one-channel distribution strategy (Forkliftaction.com News #217) for its Caterpillar and Mitsubishi forklift brands. Wilson says the NMHG approach is not the same as MCFA because NMHG will continue to offer a full product line through both the Hyster and Yale dealer channels.

Arnold Machinery and H&E reached an agreement in 45 days. Al Richer, chairman of Arnold, called John Engquist, H&E president and chief executive officer, on 1 June, according to Mecham. Top executives of each firm met on 6 and 7 July, and, internally, Arnold disclosed the agreement 15 July.

“It is the goal of both H&E Equipment Services Inc and Arnold Machinery Co to make this transition as smooth as possible to both the company’s employees and our valued customer base,” the announcement says.

A senior H&E executive acknowledges, “We are in discussions (with Arnold). Nacco has a desire to consolidate where they can,” but, as of 20 July, NMHG had not officially approved any deal.

Arnold Machinery started working with the Hyster brand initially via a verbal agreement in October 1944. On that basis, “we claim to be oldest independent Hyster dealer in the country,” reports Mecham, who started with Arnold in 1974.

Prior to factoring in the H&E assets, the material handling division accounted for 40% of Arnold business, according to Mecham. Other Arnold divisions focus on mining, construction and farm implements.

Mecham identifies upcoming goals: “Increase marketshare for Hyster and Yale, not diminish either brand” and organise service, parts and inventory resources “to take care of these two products.”
“Over the years, we have tried to expand and grow,” Mecham adds. On 1 October 2008, Arnold purchased the Hyster rights for North Dakota, Minnesota and western Wisconsin from RDO Equipment Co of Fargo, North Dakota, a major John Deere equipment dealer. In April 2006, Arnold acquired the Hyster market for Colorado and most of Wyoming from Materials Handling Co of Denver.

Publicly traded H&E has 63 full-service facilities in various US regions and reported a profit of USD43.3 million on 2008 sales of USD1.07 billion.

H&E acquired the assets of JW Burress Inc of Roanoke, Virginia with 12 locations in four middle Atlantic states for about USD144.1 million on 1 September 2007 and the assets and some liabilities of Eagle High Reach Equipment Inc of La Mirada, California with four locations in southern California for about USD66.3 million on 28 February 2006.

NMHG Holding Co is a subsidiary of publicly traded Nacco Industries of Mayfield Heights, Ohio and, through NMHG, designs, engineers, manufactures, sells, services and leases forklifts and aftermarket parts under the Hyster and Yale brand names. Two reportable business segments are wholesale manufacturing, known as NMHG Wholesale with 2008 sales of USD2.74 billion, and retail distribution, known as NMHG Retail with 2008 sales of USD84.2 million.

A Canadian federal department is developing a new strategy for procurement of commercial forklifts.

“The federal government currently procures all forklifts via individual contracts,” the Public Works and Government Services Canada (PWGSC) department says in a statement. “Requirements are competitively tendered, and the lowest technically compliant bidder is awarded the contract.”

PWGSC, however, “in consultation with industry and client departments, has been working on the development of a new procurement strategy for commercial forklifts. While options for the procurement strategy are still being evaluated, it is expected that solicitation documents could be posted on the government electronic tendering system in the fall of 2009”.

Because the new strategy for forklifts is not yet completed, “it is inappropriate to speculate on the details of any potential contractual agreement”, notes Céline Tremblay, a media relations advisor with PWGSC’s communications sector in Gatineau.

PWGSC procures goods and services for more than 100 federal departments and agencies including the Department of National Defence, which accounts for about 90% of the government’s acquisitions of forklifts. Other federal departments have requirements for forklifts and warehouse handling equipment, but, historically, those demands are relatively low.

PWGSC purchased approximately 60 forklifts on behalf of federal government departments for the fiscal year ended 31 March 2008.
The acquisitions branch, one of 12 within PWGSC under Minister Christian Paradis, assists departments and agencies at each stage of the supply cycle and offers tools that simplify and expedite the acquisition of goods and services. The branch helps identify the goods or services to be purchased; selects the most effective procurement approach; develops evaluation criteria; calls for, receives and evaluates bids; conducts negotiations; debriefs unsuccessful bidders; and administers contracts.

The compact sweeper from Bucher Schörling is 3.78 metres (12.4 feet) long, 1.28 metres (4.2 feet) wide and has a maximum laden weight of 4.5 tons. The fuel cell’s nominal output is 20kw (27hp) and the vehicle’s maximum speed is 40km/h (25mph). The vehicle can operate for over seven hours on a full tank. It is filled with 6.5kg of gaseous hydrogen at 350 bar.

According to Proton Motor, it takes less than 10 minutes to fill the vehicle’s gas tank. Hydrogen is stored in pressurised canisters stowed behind the driver’s cab.

The vehicle’s propulsion concept involves replacing the conventional diesel engine with a fuel cell and battery system and the hydraulic drive train and operating hydraulics with electrical power drives.

The hybrid fuel cell propulsion system from hy.muve is a combination of a fuel cell and a lithium polymer battery. At its core is Proton Motor’s 20kw PM Basic A 20 fuel cell system.

Proton Motor says using hybrid technology can result in energy savings of around 50% compared to a diesel propulsion system. The operation is also completely emission-free.

The sweeper has been delivered to the Civil Engineering Office in Basle, Switzerland that is responsible for street cleaning which will test the vehicle as its first operator. Over the next 18 months, the sweeper will be extensively tested in different Swiss cities.

During the practical trials, the sweeper’s operating performance and durability will be tested under everyday conditions. The partners in the project aim to make the new technology a reality and to encourage the implementation of other hydrogen-fuelled applications.

The compact sweeper vehicle was sponsored by funds from Switzerland and is the result of a co-operation agreement between Proton Motor Fuel Cell GmbH and the companies Bucher Schörling, Messer Schweiz AG, Brusa Elektronik AG, the Swiss materials testing and research institute Empa and the Paul Scherrer Institute.

Bucher Schörling, a municipal street cleaning vehicle manufacturer, was responsible for the vehicle and system integration, Proton Motor supplied the fuel cell propulsion system and Empa, which also provided designs for the electrical propulsion system, headed the project.

Proton Motor Fuel Cell GmbH, based in Puccheim, near Munich, is a fuel cell specialist that focuses on back-to-base applications for forklifts, city buses and stationary solutions. It is a wholly-owned subsidiary of Proton Power Systems plc.

The purchase boosts the industrial market segment in the province for the Hertz unit, Matthews Equipment Ltd. In the Canadian province of Ontario, Matthews Equipment, a Bobcat dealer, is based in the Etobicoke neighbourhood of Toronto and has other sites in Barrie and Ottawa.

Founded in 1998, IIR rents aerial work platforms, forklifts and various other pieces of commercial equipment. IIR supplies non-operated rental equipment throughout Atlantic Canada to support industry needs for oil refining, pulp and paper, ship building, construction, manufacturing and mining.

“Matthews’ acquisition of Irving Industrial Rental is instrumental in the company's continued growth in the Canadian industrial rental market,” says Gerry Plescia, president of Hertz Equipment Rental Corp, a business unit of Park Ridge-based Hertz Global Holdings.

Family-owned JD Irving is based in Saint John and has operations in seven provinces in eastern Canada and various locations in the United States.

Full-service aerial work platform dealer Trico Lift of Millville has opened a second facility in the Texas market.

The new location in San Antonio, under service manager Danny Lewis, follows Trico Lift’s establishment last year of a site in Tomball, a city that is accessible to the Houston–Sugar Land–Baytown metropolitan area. Billy Abshire is general manager for Trico Lift’s Texas operations.

Trico Lift, which represents the Genie, JLG and MEC brands of aerial work platforms, has five other branches in Maryland, New Jersey, Ohio, Pennsylvania and Virginia.

Recently, the San Antonio store donated the use of lift equipment for installation of sunfish art at an Interstate Highway 35 underpass as part of the San Antonio River Improvement Project.

Joseph Pustizzi Sr started the business in a two-bay garage in 1952 as a farm tractor distributor. Now, Ken Pustizzi heads Trico Lift as president, and Joseph Pustizzi Jr guides Trico Equipment Services LLC of Vineland, New Jersey, which focuses on the earthmoving market and represents Case construction equipment. The Trico operations reorganised into two separate companies in 2007.

“San Antonio is a great city, and we’re happy to be here to support local business and industry as well as the development and activities happening throughout the area,” says Ken Pustizzi.

In May, the National Petrochemical and Refiners Association of Washington, DC presented a contractor merit award to Trico Lift for its safety program.

Growth in internet advertising continues to outstrip all other traditional mediums. By utilising the Forkliftaction.com Marketplace you can join a growing network of dealers that together make up the world’s largest portal for used forklifts for sale.

As a dealer on Forkliftaction’s Marketplace, you benefit from the following features:

According to HHIE, the engine produces good acceleration and a high climbing ability on rough terrain and slopes. The driver can select one of two driving modes. In the “STP” mode, the forklifts save fuel during light work, while in the “Power” mode, full power enables heavy loads or work on difficult terrain. The driver can also maintain a selected speed by pressing a switch, another function that saves fuel.

The first two 160D-7 machines have already been sold in Belgium and England.

Rush Tracking acquires patent portfolio
Kansas City, KS, United States
RFID specialist Rush Tracking Systems has acquired a portfolio of intellectual property and patents from International Paper.
The patents consist of intellectual property designed to support the use of automated load scanning devices combined with a location identification system and integrated into materials handling devices.
Developed in the late 1990s by International Paper to track paper rolls in their manufacturing plants and warehouses, the intellectual property portfolio was enhanced in the early 2000’s by ASURYS, International Paper’s RFID internal venture.

HSE inspectors surprise employers
Sheffield, UK
Businesses in Sheffield, UK are being targeted with spot checks by health and safety officials as part of a regional campaign to promote the safe use of forklifts.
According to The Star, officials’ checklists include operator training and supervision; vehicle examination; inspection and maintenance; and whether pedestrians and forklifts are being kept apart where possible.
"We're not looking to catch people out, but we will not hold back from taking enforcement action such as issuing a prohibition or enforcement notice if necessary,” says HSE inspector Chris Chambers.
The safety campaign is co-ordinated by the Health and Safety Executive and Sheffield Council.

Haulotte Group BilJax holds open house
Archbold, OH, United States
Haulotte Group BilJax has held a customer open house at its Archbold, Ohio manufacturing facility.
Over 30 US and Canadian companies were represented at the event that featured aerial work platforms, scaffolding and the new AS 2100 aluminium staging system.
One of the highlights was the new Optimum 1930 E scissor line, the first product in the Haulotte aerial work platform product line to be produced in the US.

Online store offers choice and convenience
Maidenhead, United Kingdom
It is now possible for end-users to buy items like forklift attachments, balers or cleaning machines via an online industrial equipment store launched this month.
The Barloworld Handling online store has a selection of over 3,000 lifting, handling and storage solutions.
Customers who place their first online orders before 31 August will receive a 10% discount.

The TH320 is a completely new machine designed from the ground up. Redrock says it has the strongest chassis design in its class, a 126hp (94kw) engine and a newly patented drive train layout.

Other features include increased operator headroom in the new tilting cab, an improved airconditioning system, a quieter operator environment, an improved control layout, and better visibility than equivalent machines.

The TH320 has a maximum lift height of 5.2m (17.1 feet), a forward reach of 1.6m (5.3 feet) at maximum lift height, and a horizontal maximum forward reach of 3.2m (10.5 feet). Tractive power is provided by an Iveco engine. The patented drive train layout has a six-speed power shift transmission, upgraded axles with inboard brakes and a limited slip differential on 10 stud hubs. The TH320’s top speed is 40km/h (25mph).

Fire Chief Jerry Johnson borrowed a Caterpillar forklift to position an antique bell on a steel frame in front of the Madison fire department building.

The forklift “was handy” and made the technical manoeuvre feasible, Johnson says.

At one time, the 1,525 lb (686 kg) cast-brass bell was positioned atop the city hall and served as the city’s fire bell to summon volunteers for an emergency. Recently, it was invisible to the public in a wooden enclosure on the roof near an alley, and metal oxidation had resulted in a green coloration on the bell’s surface.

Craig's Welding & Repair in Madison ground away the grime and residual coating and restored the bell to the shiny appearance it had in 1886 when Henry McShane & Co cast the bell in Baltimore, Maryland. The firm operates today as McShane Bell Foundry in the Baltimore suburb of Glen Burnie.

Volunteer fireman Kurt Christiansen provided the forklift for Johnson’s 15 July lifting of the bell.

Kurt and Tammi Christiansen own a water softener and purification service in Madison and use the forklift, which has a 4,000 lb (1,800 kg) lifting capacity, to unload pallet loads of salt-filled bags from trucks.

This year’s awards include the following six categories:
• Australian Freight Industry Promotion and Careers Award
• Australian Freight Environmental Award
• Australian Best Practice Safety Award
• Australian Freight Innovation/Technology Award
• Australian Freight and Logistics Award
• Australian Freight and Logistics Personality of the Year

Nominations close on 14 September, with the event taking place on 3 October.

New Zealand’s low productivity goes back several decades and there are very real barriers to the country lifting its performance, says Professor Erling Rasmussen of AUT University, who launched his new book, ‘Employment Relations in New Zealand’, this week.

“Many service industry jobs, for example, are largely lowly paid, don’t establish long-term careers and are not known for good employment conditions,” he says. “And across many industries, employees experience relatively low pay levels.

“This means that in a strong global economy, consumerism floats into our labour market and our best and brightest head overseas. Meanwhile, we suck in a lot of extra people to keep the economy going.

“This low-wage route mentality doesn’t bode well for New Zealand’s overall productivity,” says Rasmussen. “The end result, no matter whether we’re in an economic boom or bust, is an unstable economy.”

Rasmussen says that New Zealand’s disproportionately high number of SMEs adds to the country’s underlying productivity issue.

“Up-skilling staff through training and development is one of the few issues on which employers and unions agree but putting it into practice in an SME environment is not always realistic,” he says.

“SME employers operate from a necessarily survivalist approach. Their focus is on tax, revenue, getting products to market, intellectual property and so on. The bigger issues of productivity and skills shortages are in fact often counter-productive to employers achieving their immediate and short-term business objectives.

“So, for New Zealand, a coherent, strong lift in the country’s productivity becomes problematic,” he says. “There’s no magic wand, but discussions on how we address the issues needs to be brought more into public debate.”

Rasmussen says in the past 10 years the government tried to rapidly increase vocational training and generally improved the quality of education but it has not yet spilled into overall productivity.

“The real concern is when people become unemployed for longer periods of time, they lose skills and confidence and restarting is difficult. This, alongside the productivity issue, is where the country’s leadership needs to focus its energies.”

The new book is the extensively revised and updated edition of the 2002 text by Deeks and Rasmussen.

The Logistics Association of Australia (LAA) is looking for industry professionals for a volunteer program to provide supply chain management technical support to countries in need.

The program, a project between the LAA and the Clinton HIV/Aids Initiative (CHAI), seeks to place supply chain practitioners in a job or project in developing countries where a need for training and development has been identified.

Supply chain expertise is required across the board including new product introduction, planning, procurement, warehousing, order management/fulfillment, distribution, and transportation, along with supply chain strategy and operational excellence, product returns and supporting technologies.

Volunteers can provide their time, from two weeks to several months, depending on the country and project facilitated. Areas where CHAI currently works and may have a need for volunteers include Cambodia, India, Indonesia PNG, Ethiopia, Liberia, Rwanda, Swaziland, Togo, the Caribbean, the Bahamas, the Dominican Republic, and Trinidad and Tobago.

For more information, expressions of interest documents and application
forms, visit www.laa.asn.au and click on Supply Chain International Development.

A report by the Australian Industry Group and KPMG into business readiness for climate change reveals a mix of responses.

While businesses have begun to take active steps to measure and manage their carbon footprints, there are still significant problem areas, with businesses not yet well informed about the government’s proposed Carbon Pollution Reduction Scheme (CPRS).

“There is clearly a great deal more that needs to be done before we can assume business is adequately prepared for the scheme and its impacts," says Ai Group chief executive, Heather Ridout.

According to Ridout, one of the biggest concerns for business is the disturbing proliferation of regulatory measures in the climate change area in recent times and the strong expectation of more to come. “Notwithstanding some promising initial comments by the commonwealth government, there is yet to be any streamlining of (the) regulation over greenhouse gas emissions."

"These findings accord with a recent report by the Productivity Commission in which it counted no less than 244 regulatory measures related to greenhouse gas emissions administered by 56 different agencies. This is emerging as a major failure of policy in Australia. Ai Group urges the government to put right at the top of the policy agenda a plan with clearly defined targets aimed at getting rid of unnecessary and productivity damaging climate change regulations."

Key findings of the report:

• Almost three-quarters of businesses currently measure or plan over the next three years to measure their carbon footprint;
• Around 38% of businesses have already taken steps to reduce their direct emissions, reduce their energy overheads or to reduce their energy inputs per unit of production;
• More than 60% of businesses have taken steps or plan over the next three years to invest in “cleaner” capital equipment as part of their management of their carbon footprint;
• Only 15% of businesses surveyed were confident they had knowledge of all key elements of the CPRS;
• Over 30% of businesses say they have no knowledge of the key elements of the Scheme;
• Over 55% of all businesses are currently not taking steps to become better informed;
• Close to one-quarter of businesses surveyed have undertaken a formal assessment of the impacts of the CPRS;
• Across businesses of all sizes, almost 70% of respondents expect to be allocating extra resources over the next three years to compliance with regulations in the areas of greenhouse gas emissions and energy use.

Victoria’s secondary school students can improve their understanding of the transport and logistics industry through the use of a new kit which enables transport, logistics and supply chain to be taught within the Year 7-8 geography and social science syllabus.

Called “The Right Move – Geography of Logistics and Supply Chain”, the resource kit will give teachers the information and tools needed to deliver syllabus content and, at the same time, boost awareness of the size and value of the industry, which is worth nearly 15% of Victoria’s gross state product and employs around 334,000 people.

The kit was developed by TDT Victoria, the Victorian government’s industry training advisory board for the T&L industry.

Racking dealers and distributors across the country are helping their customers protect one of the most valuable assets in their warehouse, pallet rack. Like a good insurance policy, RackDeflektor provides valuable protection against the daily impacts from forklift traffic and pallets going in and out of their rack.

HANDLING EXPO is the 9th International Exhibition Specialized in Material Handling Equipment Transportation Equipment, Containers & Packaging Equipment, Storage Equipment, and Communication Equipment as the Only Exhibition in Egypt, Africa and the Middle East, held during the period from 22 - 25 October 2009, at Cairo Fair Ground – Egypt.

The PTX-550 is another new addition to the Big Red Line of lift equipment at Taylor Machine Works. The 117-inch wheelbase PTX-550 has a rated capacity of 55,000 pounds at 51-inch load center. Designed and built specifically to lift and maneuver palletized materials, the PTX-550 incorporates many innovative and performance-proven features for which Taylor trucks are known.

Whether handling 90,000 pounds of project cargo or 36,000 pounds of steel, the Hoist Liftruck P-Series is built specifically to stand up to the demands of heavy industries. The solid chassis design, along with high quality components, make the Hoist Liftruck P-Series the most dependable pneumatic forklift line in the industry. The rugged nature of the line is complemented by advanced ergonomics and technology.

The Fork Lift Truck Association (FLTA)’s National Forklift Safety Week, an annual awareness campaign targeting warehouse managers, forklift operators, their co-workers and the general public, will be held on September 21 to 27 this year.